Justin Kirkvold, Phone-N-Fix store manager, puts a phone case on an iPhone for a customer Friday, July 28, at the 3800 West 41st street location in Sioux Falls.

Briana Sanchez / Argus Leader

“Our growth goal is 300 stores in five years,” said CEO TJ Barthman, a goal he calls "aggressive but attainable.

From a corporate-owned store at 41st and Lake, Phone-n-Fix now has franchise locations at the Empire Mall, another newly opened location nearby, a location in North Dakota and two on their way in Iowa, with big growth plans.

“It’s a situation where we would like to start more in the Midwest and Plains, but for the right deal, we would expand that territory,” Barthman said.

"We just feel there's a need for that, kind of like in the car industry. Not everybody buys brand new cars. A lot of people buy used cars," Barthman said. "With the sticker shock that a lot of people are feeling in buying their phones outright, they're realizing how much these phones really are. When you can get newer, certified pre-owned devices for hundreds of dollars off retail, it makes sense for a lot of people."

Phone-N-Fix located at 1604 West 41st street Sioux Falls.

Briana Sanchez / Argus Leader

'More of a higher-end feel'

Barthman was previously in the gym business, with Tryon gyms in Brandon and Sioux Falls. Then future Phone-n-Fix managing partner Kevin Tupy introduced him to his business Next 2 New Wireless, in Sioux Falls. In 2014, Barthman sold both gyms and dove into the wireless business.

Next 2 New Wireless had a total of 7 corporate-owned stores, but they wanted to go a different direction. So in early 2015 they changed the name to Phone-n-Fix, and made quite a few more changes.

“We took the model of the mom-and-pop type feel of a second-hand, used cell phone and repair store, and give it more of a higher-end feel,” said Barthman. “We went to more higher-end devices, we went to higher-end fixtures, we went to a total store remodel. Changed the brand, changed the logo, changed everything.”

Sales started to ramp up, and Barthman and his partners realized they had a business with franchise potential. They worked with Homewood, Illinois-based franchise consultancy iFranchise Group to develop their franchise model. They then pursued a relationship with Franchise Dynamics, a franchise sales outsourcing company, which vets franchises and then markets them if they decided to collaborate.

“They don’t take everybody,” said Steve Michael, Phone-n-Fix executive vice president of enterprise development. “They carefully evaluated our business, right down to the smallest, little micro things as to whether or not they wanted to hook their wagon to us.”

Employees work with several customers at Phone-N-Fix located at 1604 West 41st street Friday, July 28, in Sioux Falls.

Briana Sanchez / Argus Leader

The key to Phone-n-Fix's model is providing a professional look and customer service, with everything from a wide phone selection and fast, in-store service.

"We go by the philosophy "no phone, no life.' We want to make sure everybody is getting their phone right back in their hands as soon as possible," Barthman said. "If we can't fix it, we'll walk you to the other side of the store and get you a certified pre-owned device. But nobody should be leaving the store without a phone in their hand or at least their own phone fixed."

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The franchisee hunt

In November, they begin looking for franchisees. They were looking for people already in the businesses looking to strike out on their own as an owner/operator, or a multi-unit investor -- often someone coming out of a successful leadership role in corporate America, and seeking to build something of their own.

They did a lot of marketing looking for franchisee online, including Facebook and LinkedIn. They then winnowed down their potential franchisees, screening them through Franchise Dynamics and then gauging them further themselves in interviews.

The first franchisees are crucial because who they are will build the base for further growth.

“One of the toughest things you’ll do as a franchisor is to turn down a check for a $35,000 franchise fee,” said Barthman. “But it’s something that sometimes has to be done. Because if they don’t fit your system, if they don’t fit into your mold, if you don’t think they’ll be a good franchisee, then as a franchisor, you have to tell them to keep the money.”

Phone-N-Fix located at 3800 West 41st street in Sioux Falls.

Briana Sanchez / Argus Leader

The Sioux Falls growth

In Sioux Falls, there is Jill Solberg. Solberg knew the business well as a wireless industry veteran and has known Tupy, Phone-n-Fix managing partner, since high school.

She bought the Phone-n-Fix location in the Empire Mall, then became a franchisee when the Phone-n-Fix flipped to a franchise.

“She’s been with us since November of last year, and here within less than a year she’s already opening her second store,” Barthman said.

The second Phone-n-Fix franchise store is in Fargo, North Dakota. A former employee and his wife moved to Fargo and managed the store, but are now taking over as franchisees and looking outside their mall location to a brick-and-mortar location.

Phone-n-Fix is expanding into Iowa, with a franchise planning two stores, in Ankeny and West Des Moines.

Jill Solberg, owner of Phone-N-Fix located at 3800 West 41st street, poses for a photo outside of the store Friday, July 28, in Sioux Falls.

Briana Sanchez / Argus Leader

In Sioux Falls, Solberg has expansion plans of her own. Solberg now has a second location, across from the mall on 41st Street outfitted with the signature higher-end approach Phone-n-Fix require. The store recently opened but is aiming for a grand opening this week, with a raft of giveaways.

"We're always having our eyes open for high-traffic areas. Obviously 41st Street in that vicinity is definitely high traffic," she said. "What I've learned from the guys is, with this business, like a lot of businesses, you want to be front and center, you know? Very visible because (phone sales and repair) can be one of those things, kind of an impulse."

She also is planning to buy the 41st and Lake location, as well. She's committed to three Phone-n-Fix locations in the Sioux Falls market, with room to perhaps add a fourth. And, she says she'd interested in looking at markets outside Sioux Falls.

"It's hopefully a fun, exciting adventure, and we'll keep growing it," she said. "As long as it does well, that's the plan, to just keep growing."

That sounds like a good fit with Phone-n-Fix's aggressive expansion plans.

Originally Published 9:26 pm CDT August 1, 2017

Updated 4:45 pm CDT August 2, 2017

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